What Tariffs and Volatility Really Mean for Business
Tariffs increase the cost of goods imported across borders. Market volatility creates unpredictable price changes and shifts in consumer behavior. While these conditions often seem risky, they can also be used as leverage.
For executives in transition, understanding these forces can help you make better business decisions, especially when evaluating franchise ownership.
1. Focus on Franchise Models That Don’t Rely on Imports
Franchises in product-heavy industries often rely on imported goods. When tariffs increase, those input costs rise and margins shrink. By contrast, service-based franchises tend to be more insulated.
Examples of industries with lower import reliance:
- Residential and commercial cleaning
- Pest control
- Home repair and restoration
- In-home senior care
- Mobile oil change services
These types of businesses depend on local labor and basic equipment, not international supply chains.
Action Step:
Ask the franchise development team where their core equipment and materials come from. If they are primarily domestic, you reduce tariff exposure.
2. Use Economic Instability to Negotiate Better Terms
During uncertain times, vendors, landlords, and even franchise systems are more likely to offer flexibility. Fewer buyers or investors means they are more open to conversations.
You can:
- Ask for lower lease rates or buildout contributions
- Negotiate longer payment terms with vendors
- Explore franchise fee discounts in slower regions
- Request additional training or launch support
Action Step:
When approaching partners or franchise brands, explain how you are prepared to move forward in today’s market and ask what incentives are available.
3. Pay Attention to Shifting Consumer Priorities
Market volatility often causes consumers to rethink their spending. Demand does not always disappear. It shifts.
Consumers may:
- Delay luxury purchases
- Focus on essentials and maintenance
- Prefer services that save time or reduce personal stress
Businesses that meet needs instead of wants tend to perform better during uncertain periods.
Action Step:
When comparing franchise options, prioritize businesses that offer recurring, practical services. These include things like routine vehicle care, tutoring, elder care, or property maintenance.
4. Take Advantage of Slower Expansion Cycles
During market volatility, many investors pause. This slows down franchise growth and opens up opportunities for those willing to move forward.
Some brands may:
- Offer larger territories
- Reduce initial franchise fees
- Provide more hands-on onboarding
- Be more open to multi-unit discussions
Action Step:
If you are actively exploring ownership, ask franchise brands which regions are currently open and underdeveloped. You may get access to more favorable terms simply because there is less competition for the spot.
5. Adjust Your Local Marketing Message
Volatile markets require a different marketing tone. Customers are looking for businesses they can rely on, not those promising luxury or scale.
Messaging that performs well during uncertain times:
- Transparent pricing
- Fast and local response
- Reliable service over flashy offerings
- Time-saving or money-saving benefits
Action Step:
Work with the franchise’s marketing team to build campaigns that highlight stability, cost-efficiency, and trust. Avoid focusing on status or lifestyle.
Final Thought
Tariffs and volatility are not just external pressures. They are part of the environment every business operates in. When approached strategically, they can create space to negotiate better deals, choose smarter industries, and build stronger businesses.
If you are in transition and thinking of stepping into franchise ownership, this may be the right time to take action. The market may be uncertain, but clarity comes when you look in the right direction.
Book a call today to explore franchise models that are structured for long-term stability and tailored to your strengths as an executive.